Morning Briefing: Global markets mixed amid Fed, oil

by Steve Randall17 Mar 2016

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Morning Briefing: Global markets mixed amid Fed, oil

Global markets mixed amid Fed, oil
World stock markets have been reacting to the Fed’s latest interest rate decision and outlook, along with continued gains for oil. There are sharp regional differences though.

Asian indexes have closed mostly higher following the Fed’s clarification that it would only make two rate hikes this year in light of the changed economic conditions since it last increased rates in December. Tokyo was the notable exception, as the yen strengthened to the detriment of exporters.

In Europe, the news has not created the same optimistic backdrop to trading. Even higher oil prices have failed to boost sentiment as regional issues dominate. Wednesday’s UK government budget contained a reduced outlook for growth and as one of the region’s best-performers it was not welcome news. The central banks of England, Norway and Switzerland announce interest rate decisions Thursday.

Wall Street and Toronto are expected to open slightly lower.

Latest

1 month ago

1 year ago

North America (previous session)

US Dow Jones

17,325.76 (+0.43 per cent)

+5.30 per cent

-2.93 per cent

TSX Composite

13,478.13 (+0.58 per cent)

+4.75 per cent

-9.53 per cent

Europe (at 5.30am ET)

UK FTSE

6,169.57 (-0.10 per cent)

+2.31 per cent

-9.77 per cent

German DAX

9,851.26 (-1.32 per cent)

+5.06 per cent

-17.77 per cent

Asia (at close)

China CSI 300

3,124.20 (+1.11 per cent)

+1.99 per cent

-16.85 per cent

Japan Nikkei

16,936.38 (-0.22 per cent)

+6.95 per cent

-12.87 per cent

Other Data (at 6.30am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

41.09
(+1.88 per cent)

39.30
(+2.18 per cent)

1268.40
(+3.26 per cent)

U$0.7702

Aus. Dollar

U$0.7641

Oil producers to meet, Middle East budgets squeezed
Oil prices are rising on the news that producers from both OPEC and non-OPEC countries will meet next month to discuss production caps. A deal to support oil prices will not come soon enough for some Middle East nations where national budgets are under pressure from lower oil revenues. The Saudi banking system was downgraded Wednesday and the country has cut public spending by 14 per cent so far in 2016.